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Telkom Kenya, the third-largest mobile network operator in the country, is facing a significant loss of customers.
Within a short span of three months, a large number of 800,000 Telkom’s mobile subscribers left the service due to network tower issues.
This situation has raised concerns about the company’s future.
The reason why many subscribers are leaving Telkom Kenya is because there was a disagreement between Telkom and American Towers Corporation (ATC), a major telecommunications infrastructure operator.
Starting in February 2023, ATC started shutting down 246 Telkom towers because Telkom had not paid the leasing fees.
As a result, Telkom’s network coverage was greatly affected, causing service issues and unhappy customers.
The tower shutdown has clearly affected Telkom’s number of subscribers.
By December 2023, the company only had 1.34 million mobile subscribers, which is 36% less than the 2.11 million it had three months earlier.
This information, gathered by the Communications Authority of Kenya (CA), presents a gloomy outlook for Telkom.
Equitel, which is a Mobile Virtual Network Operator (MVNO) owned by Equity Bank, has now exceeded Telkom in terms of subscribers.
With a customer base of 1.5 million, Equitel has more subscribers than Telkom.
This change symbolizes the challenges faced by Telkom.
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The impact of Telkom’s loss of subscribers goes beyond just the company.
The mobile phone usage in Kenya dropped by 0.8% because many people left Telkom.
This decrease suggests that the mobile phone industry in Kenya may not grow as quickly in the future.
In the wake of a markedly reduced clientele and a besmirched standing, Telkom Kenya finds itself confronted with a formidable challenge ahead.
The pivotal task at hand lies in addressing the discord with ATC and reinstating comprehensive network connectivity to its pinnacle importance.
Furthermore, the organization is compelled to place utmost importance on rebuilding customer confidence through the provision of compelling pricing structures, enhancement of service excellence, and the execution of methodologies aimed at averting potential recurrences.
The way ahead for Telkom Kenya requires urgent steps to be taken.
It is essential to swiftly negotiate a favorable resolution with ATC to revive the inactive towers.
Additionally, the company should launch a vigorous effort to retain customers, possibly by enhancing network reliability, offering appealing data plans, and providing outstanding customer support.
Telkom can only start to bounce back from this subscriber dilemma and reclaim its position in the fiercely competitive Kenyan mobile communications sector through resolute actions.